Private Equity Investing in Small and Medium Enterprises in Central and Eastern Europe with Special Review of Macedonia

This paper examines venture capital investments' development in selected Central and Eastern European countries. We determine the differences in the level of development and the reasons, and we offer conclusions that can serve as a guideline in Macedonia's and other CEE countries' venture capital industry development.Different level of IPO market development, breadth, depth and liquidity of the secondary market; being or not being EU and NATO member – factor for sound business environment, guarantee for stability, and trust among investors, are some of the reasons for the difference in the VC industry level of development. Moreover, hurdle rates level, judicial system efficiency and property rights enforcement, required rates of return, entrepreneurial skills and knowledge, company transparency, and quality projects offered, are also significant factors that make the difference.The result of the comparative analysis in this paper based on the Venture capital fundraising and investment activities, the Country Attractiveness Index position and performed interviews, illustrates inferior role of the Venture Capital industry in Macedonia